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China 7, U.s. 7, Russia 5, Berlin 4, Egypt 2, Washington 2, Us 2, Mexico 2, Pakistan 2, Moscow 2, London 2, Benedict 1, Schuler 1, Company 1, United States 1, Obama 1, Europe 1, The City 1, Britain 1, South Korea 1,
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  KCSMMHZ    Journal  

    January 1, 2013
    2:30 - 3:00pm PST  

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>> hello everyone. happy new year. you too monica. welcome to the journal. >> ok. happy new year to you and you as well. coming up in this half-hour last minute compromise. the u.s. senate approves a deal on the budget. >> people all over the world celebrate the arrival of the new year. >> a big price hike for alcohol in russia. but will russians drink less?
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well, talk about waiting until the last minute. in washington republicans and democrats reached a compromise in the senate to avert a crushing package of tax hikes and spending cuts. the deal still needs approval in the house. the u.s. is not out of the woods yet. >> president obama said the agreement fell short of what both sides wanted but that it was the right thing to do for the country. >> senators passed the bill with 89-8. after months of wrangling, lawmakers ended their deadlock. >> i know i can speak for my conference when i say we don't think taxes should go up on anyone. but if we knew if we did nothing they would be going up on everyone. >> the bill heads to the
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republican controlled house of representatives and could come to a vote later today but it is far from certain that it will pass. president obama urged members to back the deal though it falls short of what he originally sought. >> my preference would have been to solve all of the problems in the context of a larger agreement, bigger deal, a grand bargain, whatever you want to call it that solves our deficit problems in a responsible way. does not just deal with the taxes but deals with the spending so that we can put it behind us and focus on just growing our economy. >> the plan would permanently raise taxes on households making more than $450,000 while continuing tax breaks from businesses and extend unemployment benefits through 2013 and keep popular tax credits for middle class families until 2018. a decision on spending cuts has been delayed until march.
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stock markets begin the new year on wednesday when washington will find out what wall street thinks of congress' last ditch compromise. >> we will talk more about this latest deal. for that i am joined by our business correspondent. as we heard hard fought compromise in the senate at least but not everybody seems to be too satisfied. >> it is a compromise. both sides had to withdraw from their original positions. democrats wanted to raise taxes for yearly family incomes starting at $25,000. now it has been pushed to $450,000. if you look at the republicans they preferred to not raise any taxes at all. that idea did not succeed at all. but there is a feeling of relief that the deal has been reached. you have to keep in mind the compromise needs to pass the house of representatives with
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the republican majority. >> if it does pass will it be effective and solve the budget problem in the united states? >> no. major issues have not been addressed so far. if you look at the questions of automatic spending cuts and other federal programs they have been postponed for two months. and also included in this debate the u.s. once again reached their debt ceiling at $16.4 trillion u.s. dollar. the ceiling needs to be raised again. we are looking at further heated discussions. >> what about the world economy in general? >> if the current compromise passes the house of representatives the risk of the u.s. economy being pushed back into recession is calm as of now. the spending of private households is not endangered as
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it might have been and they are saying the u.s. economy will continue to grow in a moderate way. that is at least not bad news for the u.s. economy that the world economy is so dependant upon. >> thank you so much for your analysis. >> the north korean leader delivered a surprise new year's message and promised plenty of change in 2013. >> he vowed to turn around the countries floundering economy and called for an tonight the long running feud with south korea. the first new years address by a north korean lead near 19 years. new years celebration have ended in tragedy in ivory coast. 60 have been killed and 200 injured during a stampede. >> crowds left a fireworks display.
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many of the victims were children. it is unclear what caused the disaster. >> let's have a change of pace and talk about last night's celebrations here in berlin. berlin was the place to be last night for new years. city hosted germany's biggest new years party. >> i am afraid i have to admit it happened without me but over a million dpended on the city to see several bands take to the stage followed by a fantastic fireworks display. >> let's take a look at how berlin and other big cities ushered in the new year. >> berlin welcomes 2013. a million revelers for germany's biggest party. right on the former border between east and west the pet
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shop boys rang in the new year with their hit go west. locals and visitors turned out for the festivities. there was no shortage of resolutions for the next 12 months. >> live life to the fullest, a little more. >> i just want to be a nicer person to everyone. it is a nice world. we all need to be nice people. >> the mood was more downbeat in greece. many there are pessimistic that 2013 will bring happier times. >> i hope i can laugh again in the new year but i doubt things will change. >> in crisis-hit spain revelers were in a merry mood. not even rain could dampen the spirit in madrid. >> i wish for good health and love. let's enjoy the new year and end the crisis.
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>> happy new year and where is my money prime minister. >> the new year made its way to britain and london said goodbye to 2012 with a giant fireworks display as big ben chimed the 12th hour. hundreds of thousands flocked to the waterfront to see the river and london eye lit up. at the stroke of midnight in times square in new york millions of pieces of confetti rained down on the crowd. there was plenty of midnight smooching and many younger ones were allowed to stay up long past their bedtimes. 2012 is history. cheers to the new year.
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>> with all of the new year celebrations done it is time to face reality again. the most urgent question for most people what will happen to the economy in 2013. >> some experts predict a major slump. some say this time germany will no longer be able to remain immune to the crisis. >> others believe that europe's biggest economy will continue to post solid growth if slightly less than last year. >> that is enough for most german companies to be confident about business in 2013. >> they make pieces that shape metal sheets. the company expects fewer new orders in 2013. he does anticipate keeping the business that it already has. >> we are feeling that things
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are calming down, slightly. but i don't think we will see a big dive. things are stabilizing at a high, strong level. that is our expectation. >> some german companies are even experiencing growth. in fact the whole electrical engineering sector has a bright outlook for 2013. the electrical manufacturers association are expecting across the board growth of 1.5%. >> the global situation looks positive. china has completed the change of government and in the u.s. strong incentives for investments in frane structure. those are both reasons to look forward to the new year. to not mention the fact that the euro crisis has calmed to the point that investment is possible again in troubled countries.
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>> in a global economy the face of companies like schuler is tied to markets throughout the world. for now the mechanical engineers say that they can count on strong demands, especially from china. >> if i don't think we have reason to be pessimistic. businesses always connected to psychology. i think that lots of german companies are in a very good position and the demand for many products, in the machine and equipment area, is extremely high and it will remain so. >> german engineering firms head into the new year with confidence a sign the job market will remain stable in the months ahead. >> if you are looking ahead with optimism to the new year you are not alone. pope benedict predicts peace will prevail in 2013.
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>> the pontiff made his upbeat forecast to mark the catholic church's world day of peace. he was convinced of humanity's capacity to live without conflict despite the inequality and terrorism afflicting many parts of the world. >> yeah. there is one such conflict. a drive by shooting in pakistan left several aide workers dead. >> the attack took place outside the capitol. it is unclear who was responsible it. follows the killing of nine workers in pakistan last month. >> well, some people in russia may be waking up to a new year's hangover today. but those that like their vodka might have to dig a little deeper to afford it. >> that is because moscow
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imposed a hefty tax on the spirit in a bid to curb the country's high alcoholism rate. >> russia's favorite beverage got a lot more expensive. they will have to swallow a new alcohol tax. russians are trying to laugh it off. >> i used to get to know a man and he would buy me a fine bottle of bubbly, now it barely buys a cheap sparkling wine. it is a real shame. >> the kremlin wants russians to drink less. alcohol ads banned since last summer and the new tax hike is an attempt to quench the country's thirst for hard liquor. many believe it is not dangerous if they only drink a little. but it is. you don't have to be an alcoholic to die from drinking
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too much. many do not take that seriously. >> in big cities like moscow temp rance is the latest buzz word among the rising middle class. but for many russians the love affair with vodka dies hard. >> a "new york times" correspondent has become the latest foreign journalist forced out of china. they have left beijing after authorities denied the reporter a new visa. >> after the "new york times" published critical articles about the chinese premiere. one report about the hidien wealth of his family prompted china to block the website. china says the new bureau chief has been waiting months for his working visa to be approved. >> we will take a short break. but when we come back we will be looking at freedom of speech much cherished value that can't
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be taken for granted everywhere in the world. >> the german chancellor is known to speak her mind and we will listen to her new years speech. >> that is after a short break. don't go away.
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>> welcome back. with every new year comes a new push for more democracy worldwide. freedom to speak ones mind and freedom of the press. now these are rights many of us in the western world take for granted. >> absolutely. it is hard to believe that in these modern times these values remain restricted or elusive in many parts of the world but that does not stop activists and journalists alike from fighting for what they believe in despite the consequences. >> reporters in egypt that refuse to be silenced to the freedom of the press and
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mexican journalists mourning a murdered colleague. right across the world people are fighting for freedom of expression. could they finally win their battle in 2013? >> when we compare the situation across the world we see again and again freedom of the press and good journalism are closely linked to functioning democracies and low corruption and they are also found in countries in which human rights are protected. >> many hoped the values would be enshrined in egypt. but the country's new rulers are cracking down on opposition activists, silencing critical voices and censoring newspapers. and it is a similar story in russia where president putin is muzzling anyone that speaks out of line.
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several members of the punk band pussy riot are behind bars after performing an anti-putin song. reporters without borders say journalists are also at risk in russia. >> they can publish critical reports but it could make it harder to get work afterwards or they could be brutally beaten. >> the battle for free speech is also raging in cyber space. china and 11 other countries are cracking down on descent. special filtering software blocks undesirable content on the web and only government approved websites are available. bloggers or internet activists that bypass the filters feel the full weight of the police and judicial system. journalists in china are accused of undermining the authority of the state and can
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face long prison sentences. >> nearly 100 journalists and bloggers are currently in prison. 0 in total are internet activists. you can see how important controlling information on the net is to the chinese government. >> in other parts of the world journalists are risking their lives to get their stories out. in mexico the deadly battle between the government and drug cartels. covering human rights violations, corruption and the country's drug trade is costing journalists their lives. increasing numbers have been murdered and mutilated. >> such incredible violence like we are seeing in mexico against opponents of organized crime has the direct affect that journalists self censor. among the general population it is a case of people keeping silent and not saying anything.
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>> despite the dangers, many across the world dare to speak out. but by doing so they face censorship, imprisonment and even worse. and that is unlikely to change in 2013. >> we are go to leave you now with the chancellor's new year's address. >> thanks for keeping us company this half-hour.
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